TDS Taxes

What is Tax Deduction at Source (TDS)?

TDS, or Tax Deducted at Source, is a system where a portion of certain payments is deducted by the payer and remitted to the government. It ensures tax collection at the point of income generation.

Who is responsible for deducting TDS?

Employers, banks, tenants, and other entities making payments specified under the Income Tax Act are required to deduct TDS.

How is TDS calculated?

TDS is calculated as a percentage of the total payment made. The rate varies depending on the nature of payment and the provisions of the Income Tax Act.

Can one claim a refund if excess TDS is deducted?

If the taxpayer has had excess TDS deducted, they can claim a refund for the excess amount during the process of filing their income tax return.